“It ain’t what you don’t know that gets you into trouble.”

Mar 29

“It’s what you know for sure that just ain’t so,” wrote Mark Twain.

In 2016, NerdWallet commissioned a survey* to get a better handle on Americans’ thoughts about lying when money is involved. It’s interesting to note which money-saving lies participants found acceptable. The list included:

(The number in the parentheses reflects the percent of those surveyed who said the lie was okay.)

The survey found far more men than women believe it is acceptable to tell lies to save money. For instance, 30 percent of men said it was okay not to report under-the-table income to the IRS. Only 18 percent of women agreed. One-fourth of male survey participants thought it was okay to fudge annual mileage to receive lower auto insurance rates, while just 16 percent of female respondents agreed.

Age also makes a difference. Americans who are age 65 or older were far less likely to find financial dishonesty acceptable:

“The survey found that 11 percent of seniors say it is acceptable to use someone else’s paid account for online movies, music, or articles to save on subscription costs, compared with 39 percent of Americans ages 18-64. Just 7 percent of Americans ages 65 and older think it’s acceptable to lie about annual mileage for lower auto insurance rates compared with 23 percent of Americans ages 18-64. Among all of the lies in the survey, the one that gets the most support from those 65 and older is not disclosing under-the-table income to the IRS in order to pay less in taxes – 14 percent say that’s acceptable.”

When it came down to it, “For all questions, retirees had the lowest rates of acceptance of lies compared with students, employees, and the unemployed.”

*The survey included 2,115 Americans, ages 18 and older, and was conducted February 18-22, 2016, by Harris Poll on behalf of NerdWallet. This survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

Of course, as a financial advisor, I am often privy to the lies folks tell themselves to justify making financial decisions they know aren’t truly in their best interest. If you’re ready to explore how your personal illusions can impact your financial future, my book Mindful Money may be helpful.

Weekly Focus – Think About It

“I believe that there is a subtle magnetism in Nature, which, if we unconsciously yield to it, will direct us aright.”–Henry David Thoreau, American author

* These are the general views of Jonathan DeYoe and they should not be construed as investment advice for any individual.

Jonathan K. DeYoe is the president of DeYoe Wealth Management in Berkeley, CA, the author of Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend, and the founder of Happiness Dividend. Happiness Dividend is a blog offering educational content and tools. The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which financial choices and which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Financial Planning and Investment Advice are offered through DeYoe Wealth Management, Inc., a registered investment advisor doing business as Happiness Dividend. All performance referenced anywhere on this website is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. Original content written by Jonathan K. DeYoe, Carson Group Coaching, and Broadridge Advisor Solutions (copyright 2017). The Happiness Dividend crew selects and edits all content with permission and care before you see it here. There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.Disclosures